PSALM sets new bidding for Manila Thermal Plant

MANILA, Philippines — State-run Power Sector Assets and Liabilities Management Corp. (PSALM) has set a new round for the sale of the Manila Thermal Plant property after a failed bidding.

PSALM is inviting interested companies to participate in the new round of bidding for the sale of the Manila Thermal Power Plant property located in Paco, Manila.

The state-run firm set the minimum bid price for the property at P736.37 million.

Composed of eight lots,  the property has an indicative land area of 20,975 square meters (sqm).

The land will also be sold on an “as is, where is” basis.

To secure a slot in the bidding process, PSALM said interested parties must provide a bid security equivalent to at least 10 percent of the bid price.

Companies are given until Nov. 21 to secure the bidding package.

PSALM has set a pre-bid conference on Nov. 5 and the bid submission deadline on Nov. 23.

The sale of the real estate property is primarily aimed at augmenting its funding sources which will be used in servicing assumed financial obligations, PSALM said.

PSALM earlier said it has committed to start privatizing the Manila Thermal Plant property this year to further bring down its liabilities.

PSALM is the agency mandated by the Electric Power Industry Reform Act (EPIRA) of 2001 to handle the sale of the remaining state-power assets and the financial obligations of Napocor.

The state-run firm has a financial obligation of P449.4 billion as of the end of June, down 64.35 percent from the peak of P1.24 trillion in 2003.

Broken down into specific items, PSALM’s remaining principal debt is  P246.73 billion, while the remaining obligations under its independent power producer contracts amounted to P202.7 billion.